A Recessionary Output Gap Implies That

question 13

Multiple Choice

A recessionary output gap implies that

• A)there is excess demand for most factors of production .
• B)the intersection of AD and AS occurs where real GDP exceeds potential output.
• C)the economy's resources are being used at more than their normal capacity.
• D)the demand for all factor services will be relatively low.
• E)there is upward pressure on wages.

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Definitions:

Kinetic Energy

The energy possessed by an object due to its motion, calculable as one-half the mass times the square of its velocity.

Electron Clouds

The region around an atomic nucleus where electrons are likely to be found, representing the electron’s probable location based on quantum mechanics.

Tertiary Hydrogens

Hydrogen atoms attached to a tertiary carbon, which is a carbon atom bonded to three other carbon atoms.

Rate-Limiting Step

The slowest step in a chemical reaction sequence which determines the overall reaction rate.